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Post by sportsrancho on Feb 29, 2024 8:01:52 GMT -5
You don’t buy a stock and not plan on when to sell it, unless you’re holding it for your kids in which case they will sell it. People have their own thoughts on what is fair value, and if the stock gets pushed above it, they take profits and then they buy it back on a dip. Most shareholders I know trade around their core. Or they sell calls for premium. Most of the time I’m too lazy to do it. But I do on occasion buy leap options. But like Ray says, where are they?
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Post by cjc04 on Feb 29, 2024 12:17:06 GMT -5
Kind of nice to think 2Q report (August) may include a note the MidCap loan was retired. That's $33M paid off in 6 months. I'm hopeful the $302M cash reported at EOY 2023 is still the same or even slightly higher. If that's the case, there's $33M in operational cash flow that can be used in 2H or added to the cash on hand for future use. e.g., paying off the $230M convertible debt in December 2026. why wouldn’t we hear about this in May? Didn’t they say they were paying it off in the 1st Q? |
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Post by prcgorman2 on Feb 29, 2024 12:27:53 GMT -5
Kind of nice to think 2Q report (August) may include a note the MidCap loan was retired. That's $33M paid off in 6 months. I'm hopeful the $302M cash reported at EOY 2023 is still the same or even slightly higher. If that's the case, there's $33M in operational cash flow that can be used in 2H or added to the cash on hand for future use. e.g., paying off the $230M convertible debt in December 2026. why wouldn’t we hear about this in May? Didn’t they say they were paying it off in the 1st Q? Nope, 1H. First bullet under Debt on Slide 26 in their 4Q and YE 2023 earnings presentation. |
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Post by cjc04 on Feb 29, 2024 12:59:17 GMT -5
why wouldn’t we hear about this in May? Didn’t they say they were paying it off in the 1st Q? Nope, 1H. First bullet under Debt on Slide 26 in their 4Q and YE 2023 earnings presentation. got it, thx |
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Post by celo on Sept 17, 2024 11:05:27 GMT -5
Since we are getting close to the conversion price I thought we'd revisit some of the covenants:
" if the last reported sale price of the Company’s common stock, par value $0.01 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive
trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion
price for the Senior convertible notes on each applicable trading day;"
So the price must be 6.76 or higher for 20 of 30 and it must happen on the last trading day of the preceding quarter. Let me know if in this I missed something
"The Senior convertible notes are general unsecured obligations of the Company and will mature on March 1, 2026, unless earlier converted, redeemed or
repurchased by the Company. The Senior convertible notes will bear cash interest from March 4, 2021 at an annual rate of 2.50% payable semi-annually in
arrears on March 1 and September 1 of each year, beginning on September 1, 2021. The Senior convertible notes are convertible at the option of the holders
at any time prior to the close of business on the business day immediately preceding December 1, 2025, only under the following circumstances: (1) during
any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price
of the Company’s common stock, par value $0.01 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive
trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion
price for the Senior convertible notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in
which the trading price (as defined in the Indenture) per $1,000 principal amount of the Senior convertible notes for each trading day of the measurement
period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; (3) if the
Company calls such Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption
date, but only with respect to the Senior convertible notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate
events as set forth in the Indenture. On or after December 1, 2025 until the close of business on the business day immediately preceding the maturity date,
holders may convert all or any portion of their Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or
deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in the manner
and subject to the terms and conditions provided in the Indenture.
The initial conversion rate is 191.8281 shares of common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of
approximately $5.21 per share of common stock). The initial conversion price of the Senior convertible notes represents a premium of approximately 30%
to the last reported sale price of the common stock on the Nasdaq Global Market on March 1, 2021. The conversion rate for the Senior convertible notes is
subject to adjustment under certain circumstances in accordance with the terms of the Indenture, but will not be adjusted for any accrued and unpaid
interest. In addition, following certain corporate events that occur prior to the maturity date of the Senior convertible notes or if the Company delivers a
notice of redemption in respect of the Senior convertible notes, the Company will, in certain circumstances, increase the conversion rate of the Senior
convertible notes for a holder who elects to convert its Senior convertible notes in connection with such a corporate event or convert its Notes called for
redemption during the related redemption period (as defined in the Indenture), as the case may be."
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Post by celo on Sept 17, 2024 11:12:52 GMT -5
For now, it doesn't matter what it does for the next few weeks as the quarter is about to end. It matters what the price is in December and especially December 30th which determines whether debt can be converted with shares or cash.
December 2025 convert at will irregardless of the price.
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Post by prcgorman2 on Sept 17, 2024 12:20:00 GMT -5
Thank you celo . I had focused on 20 out of 30 trading days at or above 130% of conversion price. i.e., $4.01 x 1.3 = $5.21 (conversion price) x 1.3 = $6.77 (call price). I had neglected to pay attention to the detail of "preceeding quarter". I think that means A) the debt won't qualify for conversion in this quarter, and B) the soonest MNKD could convert would be January 2025 if MNKD shares are at or above the call price for 20 out of 30 days in the 4th quarter of 2024. Good observation. Thanks again. |
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Post by celo on Sept 17, 2024 18:32:16 GMT -5
It allows for the debt holders to have a time buffer if the stock is showing meaningful momentum towards the 20 for 30, 6.76 price threshold. When the debt is called they need to be able to present the debt unencumbered to Mannkind.
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Post by cjm18 on Sept 19, 2024 13:45:36 GMT -5
Large incentive to get this thing over 6.77. Is that a reason to worry it will crash after 20 of 30 days are at target ?
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rebby
Researcher
Posts: 79
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Post by rebby on Sept 19, 2024 14:53:38 GMT -5
Does it need to close above 6.77 or break above 6.77 for any intra-day time period for 20 of 30 days?
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Post by prcgorman2 on Sept 19, 2024 16:49:23 GMT -5
Don't know but assumed closed at or over $6.77.
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Post by cretin11 on Sept 19, 2024 19:12:00 GMT -5
Yep, pretty sure that’s correct. “Last reported sale price” i.e. closing price.
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Post by peppy on Sept 19, 2024 20:54:33 GMT -5
Large incentive to get this thing over 6.77. Is that a reason to worry it will crash after 20 of 30 days are at target ? I am sticking to the charting pattern. MNKD has broken out. Use the UTHR daily as a template, support and resistance worked through. MNKD made a new 52 high today. UTHR daily. schrts.co/Xxxhkmdc MNKD daily. schrts.co/haCpytvtThe incentive, The Company may not redeem the Notes prior to March 6, 2024. The Company may redeem for cash all or any portion of the Notes, at its option, on or after March 6, 2024 ?The conditions, mnkd.proboards.com/post/268905 |
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Post by prcgorman2 on Sept 20, 2024 2:20:09 GMT -5
A rate cut reduces the incentive for the bond holders to want the bonds converted.to cash or shares, because the delta shrinks between current interest rates and the 2.5% on the covertible bond debt.
The conversion cost is approximately $299M. MNKD used approximately $30M cash (give or take) after the Sagard deal and last I saw had about $265M (I think), so eliminating the debt now would require some dilution.
A rate cut also reduces MNKD’s interest income from the cash in the bank, and decreases the benefit of waiting for the debt to mature.
I don’t think a half point is enough to drive a move for conversion, and the $6.77 or greater for 20 out of 30 days also hasn’t happened yet. I am curious to see the next SIR report.
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Post by letitride on Sept 20, 2024 5:53:04 GMT -5
I believe Chris addressed this issue at the Cantor Fitzgerald conference with I have options.
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